Promoter holding

if a promoter x owns majority stake in 2 companies a and b (> 50 % in each), a is financially healthy, b is completely ruined and may experience imminent bankruptcy, should i be concerned about buying shares of a?

If B is not a subsidiary of company A, then you don't have to worry on buying A.

thanks. does your statement apply if a is a subsidiary of b?

In case the B is sub. Do not buy A as they are linked.

Buy shares of 'a' only if a is a good company and not ruled by family hierarchy.

If 'a' is indeed a good company and passes several tests of being a fundamentally sound company suited for investment, then yes, this promoter involvement in 'b' is considered a negative point.

Thanks guys. I was in fact asking a generic question keeping in mind sun tv and spice jet. If one company goes bankrupt will it any way whatsoever affect the net asset value/growth of the other?

as per the news there is some manipulation in spice jet's balance sheet. they had shown positive networth , but recent few auditors have claim that their networth is not as it was shown in past year. current it have negative book value.. Cost of operations vs competition has already killed this sector.

+ rakesh jhunjhunwala have a holding in spicejet. good trader but bad investor he is so be careful as they are on the bring of bankruptcy.

Are you saying i should be wary of buying sun tv? Also rj a bad investor??please tell me that was a typo!!

I though you are buying spice Jet. sorry abt that, you can buy SUNTV, if you think its a good investment.

and RJ is a good trader, he made his fortune from futures trades and position trading, his only 2 companies which I do understand are good is titan and lupin. he did made money but his track record of investments is not super good.

Thanks does that mean even if spice jet goes bankrupt it wont have any impact on sun tv?